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East AfricaFinance & Banking

AfDB secure funding for Kenya, Uganda road construction

Editorial Desk
Last updated: March 31, 2017 10:23 am
Editorial Desk
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The African Development Bank Group (AfDB) has approved USD 253.0 million of loans to the Governments of Kenya (USD 147.3 million) and Uganda (USD 105.7 million) for the upgrading of 118 km road section connecting the two countries.

Once completed in 2021, the project is set to improve the living standards of the 1.4 million people in the project zone of influence.

The upgrading of the 118km road connecting Kapchorwa (Uganda) to Kitale (Kenya) will provide an all-weather access for citizens, farmers and traders reducing the travel time in Uganda (Kapchorwa-Suam) from 4hrs to 1.5hrs and in Kenya (Suam-Kitale) from 1.5hrs to 45 minutes.

The project according to the Bank is set to improve accessibility for traders and transporters using the border and people living in the project area with reductions in travel time, transport cost, increased mobility, and improved accessibility to economic and social facilities, and provision of market facilities, support to communities through access road and water supply.

“The proposed intervention is also in line with the Bank’s Ten Year Strategy and meets four of the High Fives by contributing to the integration of the EAC countries; improving the quality of life by providing socio-economic facilities to people in the zone of influence; increasing agricultural production through access to markets and the reduction transport cost, which lowers the cost of doing business that will play pivotal role in industrialization.” pointed out Amadou Oumarou, Director of the Infrastructure, Cities and Urban Development Department of the Bank.

The AfDB loans will cover 89 per cent and 88 per cent of the Uganda and Kenya project costs respectively. The Government of Uganda and Kenya contribution will be 11 per cent and 12 per cent of their respective country project cost.

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